PPP LOAN FORGIVENESS As a self-employed and sole proprietor individual.

I suggest you go to the Bank you run your business through.  They have a list of documentation needed to complete the application.  The bank will certify you documentation and forward the paperwork to the SBA.  Be aware, the SBA will check your credit. At that time your funds will be approved and deposited in 2 weeks.  I hope this helps.

We have done some research on this topic for clients. It is nuanced and complex, to be sure. There are several requirements that must be met in order to qualify for loan forgiveness. I am including a link to an article that is very helpful, and has within it links to begin the application process. I can also be reached on my mobile line, xxx.xxx.xxxx, to further discuss this question. 

https://www.forbes.com/sites/anthonynitti/2020/04/15/ten-things-we-need-to-know-about-paycheck-protection-program-loan-forgiveness/#4535ac3b3291

This is a great question for a CPA.

The SBA dies not consider all income as payroll. The rules on the PPP loans say to use your net profit on your Schedule C

Seems like what you said makes sense and I applied for a PPP Loan based on 1099 income. Although, I did receive assistance, it was based on my tax return Schedule C. Calculation was as follows: (Schedule C Net Income divided by 12 months) x 2.5. What my personal result is help paying rent and utilities. Every little bit helps in these crazy times.

I believe it is up to your bank to approve/deny your application. If, you have a good relationship with your Bank and a Banker they will be happy to assist.

The SBA has modified its regulations to allow a business that generates self-employment income, including sole proprietorships and partnerships, to include 2019 self-employment income as wages for PPP loan purposes, up to $100,000. For a sole proprietor, this would mean their PPP loan amount would be based upon his or her 2019 Schedule C earnings, which would be reported on the 2019 tax return that was or will be filed.

It should be the same for a contractor, which is what a 1099 employee is, as a self-employed individual.  Check with a bank that is administering the loans for details.  It may be too late for round two of the loans but you can be prepared for round three.

This is more a CPA question, but a 1099 isn’t exactly payroll. As a sole proprietor you should keep a monthly profit and loss statement. 
1099 is gross revenue, any business expense is deducted to become net revenue or profit.

If it’s a personal loan you would factor in all Living expenses to prove hardship for loan forgiveness.

The lender will more than likely want to see the P&L, Bank statements, living expenses and possibly a tax return.

As I've been telling everyone that will listen, don't blaze a new trail, Eric the co-founder of Alignable has already blazed the trail. Refer to his April 1st message "Detailed Information on Coronavirus Relief, Resources for Recovery", print "The small business owner's guide to the CARES ACT", go to page 2, Q. What types of businesses and entities are eligible for a PPP Loan ?, Answer that applies to you, individuals who operate a sole proprietorship or as an independent contractor and eligible self-employed individuals, when filling out your Bank's PPP eligibility form you will have to obtain and insert in this form your North American Industry Classification System 6 digit number, take your time, take a deep breath, dot your I's and cross your T's, later forms will ask how many jobs this loan will create, none, but it will save yours.

Best to you, your FA

Ron McLeod 

I hope this helps

• You’re eligible for loan forgiveness equal to the amount you spend on any of the following items during the 8-week period (beginning on the date the loan originated) as long as the total doesn’t exceed your loan amount:
  • payroll costs
  • interest on a mortgage
  • rent on a lease agreement
  • utility payments
  • additional wages paid to tipped employees

• You must spend at least 75% of your loan on payroll.